A very happy 2008 to all Tax Blogs.co.uk readers.

As the 2007 Tax Return deadline of 31 January 2008 approaches fast here are some tips for saving time, money and stress.

• If you use a Tax Adviser or Accountant to complete your tax return supply all your details in one go, and sorted into a neat order. Like many businesses Tax Advisers and Accountants usually charge on a time spent basis. Therefore sorting and adding up a lot of petrol receipts or putting bank statements in order or invoices raised in order takes time and therefore costs fees. Organised clients usually pay less in fees therefore invest in yourself and get organised.
• Supply copies as opposed to original documents and make sure you keep the originals safe should you need them. If advisers have to copy documents before returning them to you again this take time and can cost you extra fees.
• Supply and further information requested by your adviser promptly. Scanning documents and and emailing them saves time, avoids relying on Snail Mail and means queries or question can be sorted quicker.
• Make sure you give your contact phone numbers on all documents and emails. The assumption your accountant knows your phone number off pat or does not have to spend any time looking it up or finding it can also save time and therefore costs.
• Don't leave it to the last minute. Some advisers might charge a premium charge for working overtime late into the evening dealing with your affairs. Give your adviser all the information neatly and in plenty of time.
• Make sure you supply the right information. The tax year in the UK runs from 6 April to 5 April so for the 2007 tax return the period runs from 6 April 2006 to 5 April 2007.
• Retain and or obtain from any banks or building societies certificates of any bank interest received during the year and let your adviser have copies. Make sure you have included all your bank accounts. Even current accounts often pay interest monthly now.
• If you are a pensioner let your adviser know whether your state pension is paid weekly, four weekly (i.e. 13 payments in the year) or monthly. Make sure you keep the annual notification from the Department of Work and Pensions of your weekly rate. This usually changes each year around 6th to 10th April. So the weekly rate notification for the April 2006 increase is what your adviser needs for the 2007 Tax Return. If you give your currently weekly rate that is higher (normally) and is relevant for your 2008 Tax Return after April 2008.
• Keep Dividend vouchers and let your accountant have copies.
• Keep Contract notes for sales of shares and unit trusts. Batch these for the same share holding to match purchase notes with sale notes of the same holding. Put them in order and let your accountant have copies.
• Write a list of everything supplied (and include your phone number and mobile and email address) so your adviser can see at a glance you have included everything.
• Make sure your tax return goes in on time. A flat £100 fine by HMRC applies if your return is in late (after 31 January) and increases to £200 if the return is more than six months late.
• If Partnership Returns are late EACH partner in the practice will received a £100 fine (increasing to £200 as above) for the lateness!
• Pay your tax on time - 31 January 2008. HMRC charge interest for late payment (7.5% from 6 January 2008 was 8.5% from 6 August 2007 and 7.5% from 6 September 2006 and 6.5% from 6 September 2005) (details click here) plus surcharge penalties of 5% for balance payments paid after the end of February increasing to 10% if paid after the end of July.
• Pay your tax online to make it easier to track the payments. For detail of how to pay online click here    
• Submit your tax return electronically so you know HMRC have received it on time rather than relying on the postal system.
• Keep receipts for payment of tax and submission of returns as your evidence and record.
• If HMRC issue a tax calculation or adjustment to your tax return do not rely on it being correct it is quite common for HMRC to make mistakes.
• Don't assume that anything you are told by HMRC is correct. Many staff are poorly trained and obviously their opinion is bias. Furthermore everyone in the tax field is very busy in January so you are more likely to get the quick rather than correct or full answer to any queries.
• Be accurate and tax care. HMRC can fine for incorrect returns. HMRC raise large sums each year from fines and penalties don't become another target for the extra funds.
• If you are not sure what you are doing GET PROFESSIONAL ADVICE.

If you need help why not try our online directory of UK Tax Advisers to find a tax adviser in your local area !

www.tax-directory.co.uk